TITLE:
Transfer Pricing-Based Money Laundering in Barter Trade
AUTHORS:
Dexiang Mei, Xiaojun Li
KEYWORDS:
Barter Trade, Transfer Pricing, Money Laundering, Anti-Money Laundering
JOURNAL NAME:
Modern Economy,
Vol.6 No.6,
June
26,
2015
ABSTRACT: Barter trade attracts money launderers by its flexible contract, payment
term of reciprocal letters of credit, and convenient capital flight and tax
evasion. As far as fair value and invoiced value of the transacted goods are
concerned, transfer price-based money laundering in barter trade is done by the
means of deflated import-inflated export, inflated import-deflated export,
deflated import-deflated export, and inflated import-inflated export, where the
money laundered can be measured by capital flight, income tax evasion, import
duty evasion, and VAT refund evasion in each case. So we should reinforce
transaction supervision, promote intelligence exchange, perfect relative
regulations, and improve anti-money laundering awareness and capabilities.